1998 Russian financial crisis

The 1998 Russian financial crisis began when the Russian government devalued the rouble, defaulted on its domestic debt and declared a moratorium on payments to foreign creditors. It followed several years of large budget deficits, heavy short-term borrowing and a weak tax system, and was set off by falling prices for oil and other commodities and by the Asian financial crisis, which made investors flee emerging markets. Banks failed, the rouble lost much of its value, and savings and imports were hit hard. President Boris Yeltsin dismissed his government, and Yevgeny Primakov became prime minister. The economy recovered strongly after 1999, helped by cheaper exports and rising oil prices.

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